Malaysia Airports Holdings Bhd (MAHB) has imposed RM9.1 million in liquidated and ascertained damages (LAD) on contractors responsible for the Kuala Lumpur International Airport (KLIA) aerotrain project, Transport Minister Anthony Loke confirmed in a written parliamentary reply on Thursday.
The penalties were levied against the Alstom and IJM-Pestech Joint Venture (IPJV), covering a 91-day period from April 1 to June 30 last year. Under the terms of the contract, the LAD is calculated at RM100,000 per day, resulting in a total charge of RM9.1 million.
Loke was responding to a parliamentary question from Khoo Poay Tiong (Pakatan Harapan-Kota Melaka), who inquired about the amount of LAD imposed on the Alstom-IJM-Pestech JV for failing to deliver the aerotrain project satisfactorily.
The KLIA aerotrain links the satellite terminal building to the main terminal and is a critical part of passenger movement within the airport. Services were suspended in March 2023 following a major breakdown that left passengers stranded midway along the track. The system was initially scheduled to resume operations by March 31, 2025.
The aerotrain replacement project was originally awarded to Pestech International Bhd in December 2021, with French rolling stock manufacturer Alstom supplying the trains. However, MAHB terminated Pestech’s contract five months later, citing non-performance, missed project milestones and the risk of further delays.
In January 2024, Pestech was reappointed to the project, this time forming a joint venture with IJM Construction Sdn Bhd under a consortium with Alstom. The driverless aerotrain system eventually resumed operations in July 2025.
Despite the system’s restart, it has continued to experience service disruptions, prompting complaints from passengers and the public. The RM456 million project, designed to improve connectivity between terminals and enhance passenger convenience, has faced repeated setbacks and operational challenges.
The imposition of LAD underscores MAHB’s enforcement of contractual accountability and serves as a warning to contractors on the importance of adhering to project timelines and quality standards. The penalties aim to mitigate losses and ensure that infrastructure projects of strategic importance, such as the KLIA aerotrain, are delivered efficiently and reliably for the benefit of airport users.
